CBA cuts home loan fees in bid to win round customers

The Commonwealth Bank (CBA) is scrapping fees across a range of mortgage and savings accounts in a bid to improve customer satisfaction, it has been revealed.

CBA's changes, which include the temporary removal of mortgage establishment fees, come as all of the big four banks look to improve relations with customers following large out-of-cycle interest rate rises in November, the Sydney Morning Herald reported.

According to the newspaper, National Australia Bank is also understood to be planning an overhaul of its upfront pricing on home loans and deposits while ANZ is due to unveil a $100 million revamp of its internet banking system.

Towards the end of last year, Westpac took similar steps to those being taken by CBA when it scrapped a range of upfront mortgage fees.

Such actions could encourage more borrowers to compare home loans and consider switching should better options arise. CBA's move follows Roy Morgan Research findings which showed that the bank's satisfaction ranking among mortgage customers fell to its lowest level in five years in the wake of its 45 basis point interest rate rise in November, a move it justified with reference to higher funding costs.

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